On May 30, 2025, the Ukrainian Ministry of Finance announced its decision not to pay $665 million to holders of GDP warrants — financial instruments issued in 2015 as part of debt restructuring. This was the first default on these obligations since their creation.
What are GDP warrants?
GDP warrants are securities whose payments depend on the growth rate of the economy. If Ukraine’s GDP exceeds certain thresholds, investors receive additional payments. In 2023, the country’s economy grew by 5.3%, which triggered the obligation to pay about $665 million in June 2025.
Reasons for default
The Ukrainian government had previously imposed a moratorium on payments on GDP warrants from May 31, 2024. Attempts to restructure these obligations were unsuccessful: negotiations with major warrant holders, including large hedge funds, ended without agreement in April 2025. Finance Minister Serhiy Marchenko called these instruments “outdated” and stressed the need to revise them.
Consequences and risks
Credit rating: Moody’s has affirmed Ukraine’s rating at “Ca,” indicating a high risk of default.
Investor reaction: Despite the default, cross-default provisions were removed in 2024, limiting the spread of the consequences to other debt obligations.
International support: Ukraine continues to receive financial assistance from Western partners and the IMF, but the default may complicate future financing negotiations.
Outlook
Ukraine is seeking a complete restructuring of GDP warrants, including the possibility of exchanging them for other instruments or changing the terms of payment after 2028. However, the lack of agreement with investors and the ongoing war with Russia create uncertainty about the country’s future economic recovery.
Thus, the default on GDP warrants reflects Ukraine’s difficult financial situation and highlights the need to review the terms of its debt obligations amid ongoing conflict and economic difficulties.
On Tuesday, official events were held at the Intercontinental Hotel in Kyiv to mark the 107th anniversary of the proclamation of independence of the Republic of Azerbaijan. Among the guests were representatives of the Verkhovna Rada, the government, the diplomatic corps, and expert and business circles of Ukraine.
Greeting those present, Ambassador Extraordinary and Plenipotentiary of the Republic of Azerbaijan to Ukraine Seymur Mardaliev called May 28 “a day that marks the birth of an independent nation rich in history, culture, and resilience.” In his speech, he drew a historical parallel between the Azerbaijan Democratic Republic of 1918 and the modern state:
“Exactly 107 years ago, on May 28, 1918, with the adoption of the Declaration of Independence, the Azerbaijan Democratic Republic was founded — the first parliamentary democracy in the entire Muslim East. The ADR was created on the principles of freedom, equality, and national self-determination. It was not only a bold manifestation of our people’s right to statehood, but also an innovative example of democratic governance in the East,” he said.
The ambassador emphasized that although the ADR existed for only 23 months, it left a deep mark on the history of Azerbaijan.
“This experience of independent statehood became an important part of national identity when Azerbaijan regained its independence in 1991 and proudly proclaimed itself the successor to the ADR. The Azerbaijani tricolor, national anthem, and coat of arms reflect the legacy of this historic republic,” Seymour Mardaliev emphasized.
He highlighted the successes in the field of clean energy, mentioning the launch of the Southern Gas Corridor, the development of the Black Sea submarine cable project, and the national “green growth” strategy, which aims to reduce greenhouse gas emissions by 40% by 2050.
“Today, under the wise and far-sighted leadership of President Ilham Aliyev, Azerbaijan is a sovereign, democratic country that is successfully implementing the ideals of the ADR through effective governance, dynamic human capital development, and active foreign policy. We are experiencing the most successful period in our history,” the ambassador emphasized.
Speaking about the partnership with Ukraine, Mardaliev emphasized the strategic nature of bilateral relations. He also mentioned the recent political consultations between the two countries, including the visit of Ukrainian Foreign Minister Andriy Sybiga to Azerbaijan.
“Azerbaijan and Ukraine have traditionally strong ties based on mutual respect, trust, and support for each other’s territorial integrity. Since the beginning of the war in Ukraine, Azerbaijan has been actively providing humanitarian aid, which has already reached a total of US$42 million. And we are ready to continue our support. Azerbaijan supplies energy equipment, finances the reconstruction of social infrastructure facilities in Irpin, and provides fuel for emergency services through SOCAR Ukraine. In February this year, President Aliyev signed a decree on additional aid to Ukraine in the amount of US$1 million. We also support humanitarian demining, in particular by supplying equipment and training specialists,” he said.
In his speech, Mardaliev also touched upon Azerbaijan’s achievements in the environmental sphere and at the global level:
“Azerbaijan has voluntarily committed to reducing greenhouse gas emissions by 40% by 2050, and Karabakh and Eastern Zangezur are being transformed into green energy zones. We are actively working on transregional energy projects, in particular the Black Sea submarine cable project, which will allow us to export ‘green’ energy to Europe,” he said.
Special attention was paid to the issues of recovery and peace in the South Caucasus. The speech included messages about Baku’s desire for lasting peace in the region. In particular, Mardaliev noted the achievements in direct negotiations with Armenia, emphasizing the need to conclude a peace agreement.
“We have begun unprecedented restoration work in the liberated territories and at the same time strive to achieve a just and lasting peace with Armenia. Azerbaijan clearly states: it is time to turn de facto peace into de jure peace. We want to live in peace as two sovereign states within internationally recognized borders,” the ambassador emphasized.
At the end of his speech, Mardaliev called for unity and thanked the Ukrainian side for its partnership.
“Dear friends, I am sincerely grateful to each of you for being with us today, for supporting Azerbaijani-Ukrainian ties and deepening the friendship between our countries. Together we are stronger. Glory to Azerbaijan! Glory to Ukraine! Glory to Azerbaijani-Ukrainian friendship!” he concluded.
On May 28, 1918, the independence of the Azerbaijan Democratic Republic (ADR) was proclaimed in Tbilisi — the first secular republic in the Muslim East. The ADR existed until April 1920, when Bolshevik troops established control over its territory. In 1991, after the collapse of the USSR, Azerbaijan regained its independence. May 28 is celebrated annually as the main national holiday — Independence Day.
AZERBAIJAN, CAUCASUS, INTERNATIONAL_RELATIONS, SEYMOUR_MARDALIEV, UKRAINE
Ukrproduct Group, a major Ukrainian producer of packaged oil and processed cheese, reported a net loss of GBP 2.04 million for 2024, compared with a net profit of GBP 0.39 million in 2023.
“Financial expenses in 2024 increased by 253% compared to the previous year to GBP 2.8 million, which was caused by significant accruals of commission for deferral of a loan from the EBRD, retrospectively applied for the period from October 2016 to December 2024,” the company explained in its annual report on the London Stock Exchange.
According to the report, in December 2024, the European Bank for Reconstruction and Development (EBRD) decided to exercise its right under the loan agreement and charged a commission of GBP 2.0 million, which increased the company’s liabilities to the bank to GBP 8.1 million.
The group’s gross profit for the past year increased by 3.9% to GBP 7.12 million, while operating profit fell by 36.6% to GBP 1.08 million and EBITDA by 29% to GBP 1.7 million.
Canada’s economy grew 2.2% year-on-year in the first quarter of 2025, the country’s statistics agency reported.
The growth estimate for the fourth quarter of 2024 was revised down to 2.1% from 2.6%.
Analysts polled by Trading Economics had expected Canadian GDP to grow by 1.7% in January-March.
Compared to the previous quarter, Canadian GDP grew by 0.5% after the same increase in the previous quarter. Earlier, it was reported that growth in October-December was 0.6%.
Consumer spending rose 0.3% in the first quarter, while government spending fell 0.8% for the first time in a year.
Exports rose 1.6% and imports rose 1.1%.
The Cabinet of Ministers has approved the terms of privatization of the state-owned stake in cosmetics and household chemicals manufacturer Vinnitsabytkhim, as well as its starting price of UAH 301.4 million, according to the press service of the Ministry of Economy.
According to the report, the new owner of Vinnytsiabythim must maintain the company’s core activities and not allow any layoffs during the first six months.
In addition, they must pay wage arrears and debts to the budget within six months, repay overdue accounts payable (except for debts to sanctioned entities), and comply with environmental legislation.
Vinnitsabytkhim is included in the list of large privatization objects.
As reported, on July 31, 2024, the High Anti-Corruption Court (HACC) upheld the Ministry of Justice’s claim to impose sanctions on the Russian company Nevskaya Kosmetika in the form of confiscating 100% of the shares of the Ukrainian company Vinnytsia Bytkhim to the state.
In July 2022, the seized assets of Vinnytsiabythim were transferred to the National Agency for the Identification, Investigation, and Management of Assets Derived from Corruption and Other Crimes (ARMA).
Following a competitive selection process in July 2023, the right to resume operations and become the asset manager of Vinnytsiabytkhim was granted to Kraitex-Service LLC, whose beneficiaries, according to Opendatabot, are Ruslan Shostak and Valery Kiptik, co-owners of the EVA and Varus chains. Later, Kraitex-Service announced that it would invest UAH 400 million in launching production at Vinnytsiabytkhim.
ARMA terminated its management of the asset in April 2025 and transferred it to the State Property Fund of Ukraine for further disposal. According to the National Agency, during the period of management of the seized asset, almost UAH 100 million was transferred to the state budget.
JSC Ukrenergomash (Kharkiv) ended the first quarter of this year with net sales revenue of UAH 225.3 million, which is 23.3% more than in January-March 2024.
According to the company’s financial report on its website, net profit amounted to UAH 0.25 million, up 35%.
The company received UAH 92.75 million in gross profit, almost nine times more than in the first quarter of last year, while operating profit amounted to UAH 8.1 million, up 87%.
Ukrenergomash slightly reduced its current liabilities compared to the beginning of the year to UAH 2.302 billion, while long-term liabilities also decreased slightly to UAH 182.4 million.
Ukrenergomash, more than 75.22% of whose shares are owned by the state, is the only manufacturer of turbine equipment for hydro, thermal, and nuclear power plants in Ukraine. It also manufactures electric motors for rail and urban transport.
According to the company’s annual report, in 2024, it more than doubled its net sales revenue to almost UAH 799 million and received UAH 0.88 million in net profit compared to UAH 0.2 million in 2023.
The average number of employees in 2024 was 2,739 (3,492 in 2023).
